Correlation Between Aimia and Azimut Holding
Can any of the company-specific risk be diversified away by investing in both Aimia and Azimut Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aimia and Azimut Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aimia Inc and Azimut Holding SpA, you can compare the effects of market volatilities on Aimia and Azimut Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aimia with a short position of Azimut Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimia and Azimut Holding.
Diversification Opportunities for Aimia and Azimut Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aimia and Azimut is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aimia Inc and Azimut Holding SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Holding SpA and Aimia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aimia Inc are associated (or correlated) with Azimut Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Holding SpA has no effect on the direction of Aimia i.e., Aimia and Azimut Holding go up and down completely randomly.
Pair Corralation between Aimia and Azimut Holding
If you would invest 4,448 in Azimut Holding SpA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Azimut Holding SpA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aimia Inc vs. Azimut Holding SpA
Performance |
| Timeline |
| Aimia Inc |
| Azimut Holding SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aimia and Azimut Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aimia and Azimut Holding
The main advantage of trading using opposite Aimia and Azimut Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimia position performs unexpectedly, Azimut Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Azimut Holding will offset losses from the drop in Azimut Holding's long position.| Aimia vs. Flow Capital Corp | Aimia vs. Ameritrans Capital Corp | Aimia vs. Blackhawk Growth Corp | Aimia vs. Azimut Holding SpA |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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